Comptroller criticizes Edwards

EDWARDS  The state Comptrollers Office in an audit criticized the town of Edwards for overspending its budget because it lacked a policy on maintaining a reasonable fund balance.

The audit also determined that officials did not adequately monitor the towns financial operations and act quickly to maintain stability. In addition, the audit found that the board did not have long-term financial plans.

No wrong-doing was found.

The town made no objections to the findings of the audit and has corrected most of the items that were of concern, according to a letter filed with the report. Town Supervisor Sharee D. Lanphear was not available for additional comment.

Auditors found that balances in the towns major operating funds fluctuated significantly over the last four years primarily because the board over-appropriated fund balance and allowed the budget to be overspent. The audit also found that duties related to the towns financial operations were not adequately split up.

The audit covered the period from 2008 through 2012.

Both the general and highway town-wide funds were overspent in every year except one from 2008 through 2011, the audit found.

There was no indication that the board amended the budget or made budget transfers between accounts during our entire audit period to prevent the accounts from being overdrawn, according to the report. Had board members adequately reviewed budget status reports, they could have identified and addressed the significant negative budget variances in the expenditures.

Mrs. Lanphear told auditors that the board uses all available estimated fund balances to minimize the tax levy.

While a reduction in tax levy benefits taxpayers in the short term, fund balance should not be depleted to such a low level that there is insufficient cash available for paying bills or managing unforeseen events, the report stated.

The state recommends a fund balance of at least two months of regular expenses.

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